Thursday, April 21, 2016

EMC Earnings Fall Short as Storage Demand Is Hurt by Cloud (1) - The Boston Globe

Looking at clouds from both sides now

"EMC’s older and pricier storage devices are facing slowing demand, and newer models using flash technology aren’t growing rapidly enough to make up lost ground. As the largest data storage maker, the Hopkinton-based company is also being hurt as more customers opt to rent space from cloud vendors like Amazon.com Inc. and Microsoft Corp. rather than buy gear from companies like EMC.

“The core storage business is moving to the cloud at an accelerated pace, and that’s a net negative for the company,” said Abhey Lamba, an analyst at Mizuho Securities USA Inc. “Flash is doing well for EMC, but a lot of that is cannibalizing their own legacy systems.”"